New FLSA overtime exemption rule… what’s next?

Published December 29, 2016

There have been a lot of articles written about the injunction that was placed on the DOL- FLSA pending new labor law as it relates to salaried employees. Many employers had followed the rules assuming the law was going to come in to effect December 1st raising their respective employee’s salaries to meet the minimum criteria or converting them to non-exempt status. Clawing back the increase may bring other legal challenges to businesses as well so careful consideration should be taken before any action is taken to deal with this matter.

The injunction, issued by a judge in Texas, does not squash the new ruling, but simply blocks it until such time as it is appealed and that could take weeks or months depending on a number of factors.
The new law is further compromised given Donald Trump and the Republicans will take power in January. It has been written that FLSA may not be a priority for the Republicans so their lack of initiative in time and resources may further erode the defence of the new law by the DOL.

Properly classifying your employees as it relates to their duties and position in your organization and keeping excellent time records (hard copy or electronic) will ensure you as an employer are protecting your company against possible government action.

What is clear here is that all employers should adhere and stay informed regarding labor law while this issue is in appeal for now and possibly for the foreseeable future.

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